Khine Khine Nwe

Joint Secretary General

UMFCCI

September 28, 2016

Tokyo, Japan

Myanmar’sLight Shines bright in

ASEAN

Country withthe largest land mass in ASEAN

Borders China, India, Bangladesh,

Thailand and Lao’s

Nearly 40% of the

Worlds Population

Source: 2014 Population Census5

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2011 2012 2013 2014 2015

GDP in Kyats (Billion)

Source: Ministry of National Planning and Economic Development 6

2011 2012 2013 2014 2015

895981 1002 1071

1200U

SD

7.3% 8.4%8.7%

7.8%

Year GDP in Kyats (Billion) %2011 44,279 5.62012 45,779 7.3

2013 49,853 8.42014 54,428 8.7

2015 58,826 7.8

Source: CSO Selected

Economic Indicators, IMF

2.76 2.83

5.71 5.91

11.1

2011-12 2012-13 2013-14 2014-15 2015-16

Infl

atio

n R

ate

(%)

7

820 851.58

966.5 997.83

1200

Ky

ats

pe

r U

S $

2011-12 2012-13 2013-14 2014-15 2015-16

34.7 33.6 31.8 30.3 27.5

27.1 27.6 28.8 29.1 35.4

38.2 38.8 39.4 40.6 37.1

Agriculture(%) Industry(%) Services(%)

Source: Ministry of National Planning and Economic Development

8

Farming72%

Livestock &

Fishery27%

Forestry1%

Agriculture

Processin

g &

Manufact

uring

74%

Construct

ion

18%

Electric

Power

4%

Mining

3%

Energy

1%

Industry

Trading45%

Transportation30%

Communication

12%Social

and Administ

ration Services

6%Rental

and Other

Services6%

Financial Services

1%

Services

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2011-12 2012-13 2013-14 2014-15 2015-16

Export (US $ Million)Import (US $ Million)

Source: Ministry of Commerce

9

US mil Export Import Total

2011-12 9,136 9,035 18,171

2012-13 8,977 9,069 18,046

2013-14 11,204 13,760 24,964

2014-15 12,524 16,633 29,157

2015-16 11,136 16,577 27,713

Source: Customs Department

10

Gas, 45%

Garments, 17%

Pulse and Beans, 11%

Gem and Jelwery, 6%

Machinery equipment,

6%

Others, 16%

Machinery equipment,

18%

Iron and Steel, 11%

Automobile, 10%

Diesel, 6%

Confectionery, 6%

Electrical Products, 5%

Others, 44%

NoCommodities/

Product

Export Value (USD

in Million)

Share

%

1 Gas 4,303.71 45%

2 Garments 1,629.77 17%

3 Pulse and Beans 1,026.86 11%

4 Gem and Jelwery 568.94 6%

5Machineryequipment

539.65 6%

6 Others 244.31 16%

No ProductImport

Value (USD in Million)

Share %

1 Machinery equipment 2,530.47 18%

2 Iron and Steel 1,515.21 11%

3 Automobile 1,374.54 10%

4 Diesel 843.31 6%

5 Confectionery 814.86 6%

6 Electrical Products 708.4 5%

7 Others 6415 44%

11

Source: Customs Department

Sr CountryExport (US

mil)

1China 4,597

2Thailand 2,893

3 India 904

4Singapore 725

5Japan 394

6Honk Kong 283

7Soyj Korea 260

8Malaysia 161

9 Indonesia 140

10USA 69

11UAE 67

12Vietnam 57

13Others586

Sr CountryImport

(US mil)

1China 6,395

2Singapore 2,971

3Thailand 1,973

4Japan 1,452

5 India 807

6 Indonesia 602

7Malaysia 589

8South Korea 397

9Vietnam 290

10UAE 129

11USA 128

12Others811

12Source: Directorate of Investment and Company Administration

0

200

400

600

800

1000

1200

0

10000

20000

30000

40000

50000

60000

70000

1990-91 1995-96 2000-01 2005-06 2010-11 2012-13 2013-14 2014-15 2015-16

FDI Trend in Myanmar

Vaule (USD in Million) No. of FDIs

YearVaule (USD in

Million) No. of FDIs

1990-91 800 41

1995-96 3,200 175

2000-01 7,400 350

2005-06 7,800 400

2010-11 35,518 454

2012-13 40,699 467

2013-14 46,226 684

2014-15 54,236 895

2015-16 63,718 1108

Source: Directorate of Investment and Company Administration 13

Sr No. ParticularsPermitted Enterprises

%No.

Approved Amount (USD mil)

1 Oil and Gas 154 22,410.368 35.17%

2 Power 10 19,684.642 30.89%

3 Manufacturing 635 6,585.705 10.34%

4 Transport & Communication 33 5,085.337 7.98%

5 Real Estate 36 3,006.451 4.72%

6 Mining 71 2,897.606 4.55%

7 Hotel and Tourism 63 2,446.365 3.84%

8 Livestock & Fisheries 36 461.085 0.72%

9 Agriculture 19 249.866 0.39%

10 Industrial Estate 4 203.113 0.32%

11 Construction 2 37.767 0.06%

12 Other Services 45 650.269 1.02%

Total 1108 63,718.574 100.00%

14

Sr No. ParticularsPermitted Enterprises

%No. Approved Amount (USD mil)

1 China 132 18,072.098 28.36%

2 Singapore 209 13,066.427 20.51%

3 Thailand 96 10,500.318 16.48%

4 Hong Kong 125 7,350.659 11.54%

5 U.K 83 4,075.418 6.40%

6 Republic of Korea 127 3,489.308 5.48%

7 Malaysia 55 1,911.338 3.00%

8 The Netherlands 14 989.566 1.55%

9 India 23 732.649 1.15%

10 Viet Nam 11 693.262 1.09%

11 Japan 86 631.527 0.99%

12 France 4 541.610 0.85%

13 Indonesia 13 254.687 0.40%

14 U.S.A 17 248.216 0.39%

15 Canada 18 197.084 0.31%

16 Philippine 3 147.173 0.23%

17 Australia 17 129.509 0.20%

18 Russia Federation 2 94.000 0.15%

19 Republic of Liberia ** 4 79.201 0.12%

20 Brunei Darussalam 18 75.667 0.12%

21 Other 51 438.857 0.69%

Total 1108 63,718.574 100.00%

15

Laws under processing

• New : Myanmar Investment Law

(Parliament discussion)

• Companies Act

• Existing : Labor related Laws

(Under discussions for reform)

Amended

Mining Law

Arbitration Law

Condominium Law

Banks & Financial Institution Law

December 2015 January 2016

(1) Through strengthened public financial management, delivering fiscal prudence and macroeconomic stability, while creating the financial space necessary for an expanding economy.

(2) Reforming state-owned enterprises and, where necessary, privatizing them.

(3) Through improving healthcare and academic and vocational education, fostering the human capital to support a modern economy.

(4) Prioritizing the rapid development of fundamental economic infrastructure such as electricity generation, roads and ports.

(5) Creating employment opportunities for our people at home, the displaced, and those returning from abroad.

(6) Actively supporting the agriculture and livestock sectors to enable inclusive growth, enhance food security, and increase exports.

National Economic Policy (2016 June)

National Economic Policy (2016 June)

(7) Promoting responsible foreign investment and economic engagement through efficient procedures, macroeconomic stability, policy predictability, and the bolstering of property rights and rule of law.

(8) Achieving monetary and financial stability, while creating a financial system that can sustainably provide capital to businesses, farmers and households.

(9) Asserting the right of individuals to freely pursue the economic opportunities they choose, in a market framework that supports a vibrant private sector.

(10) Promoting and assisting small and medium enterprises as generators of employment and growth.

(11) Yielding the benefits of democracy in driving transformational and inclusive economic growth and development.

(12) Establishing an economic framework that supports national reconciliation, based on a just balancing of sustainable resource mobilization and allocation across our States and Regions.

Japan’s Investment to Myanmar

• 11th largest investor in Myanmar (2015-16) (DICA Source)

• 0.99% of Myanmar’s total FDI (DICA Source)

• Nearly 20% of Myanmar’s total FDI (Direct and Indirect investment through other ASEAN countries) (JETRO Source)

• Combined Investment from Japan during 2011-12 and 2013-14 was $ 111 million. (DICA Source)

• About six fold to nearly 300 firms operating in Myanmar since 2011

• ( JETRO Source)

Bilateral trade between Myanmar and Japan

(USD million)

21

Sr FY Myanmar Export to Japan Myanmar Import from Japan Total Trade

12000-2001 85 212 297

22001-2002 67 356 424

32002-2003 80 203 283

4 2003-2004 115 266 381

5 2004-2005 129 162 290

6 2005-2006 134 109 243

7 2006-2007 164 159 323

8 2007-2008 185 295 480

9 2008-2009 187 170 357

10 2009-2010 178 264 442

11 2010-2011 239 260 499

12 2011-2012 326 516 842

13 2012-2013 430 1,097 1,527

14 2013-2014 596 1,357 1,953

152014-2015 499 1,726 2,225

162015-2016 394 1,452 1,846

(Myanmar Customs Dept)

What does Kyauk Phyu mean..

Why do think the Chinese has been so quiet. Direct Route to the Indian Ocean.

Save up to 8 days sailing and 5% transportation Cost.

You Must Visit Kunming A rail link (which we must own) could take a day

and a half.

Most of China investment is in the West.

Will make other big countries Eager to Join.

Thank you